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The International Monetary Fund (IMF) approved a caller disbursement of astir $1.2 cardinal to Pakistan nether a bilateral arrangement, highlighting the state “maintained stability” contempt the devastating floods. The IMF Executive Board granted support nether a dual-track bailout, the 37-month Extended Fund Facility (EFF) and the climate-focused Resilience Sustainability Facility (RSF), connected Monday (December 8, 2025) successful a gathering held successful Washington, Dawn reported connected Tuesday (December 9
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Cash-strapped Pakistan is presently successful 24th IMF programme agreed past twelvemonth to supply it $7 cardinal dollars implicit a play of 39 months.
As per the latest approval, Pakistan is allowed to gully $1 cardinal nether EFF and $200 cardinal nether RSF, the study said.
The board’s connection highlighted that “Pakistan’s beardown programme implementation, contempt the caller devastating floods, has maintained stableness and improved financing and outer conditions”.
According to the board, Pakistan’s argumentation priorities stay centred connected maintaining macroeconomic stableness and advancing reforms to fortify nationalist finances, heighten competition, rise productivity and competitiveness, bolster the societal information nett and quality capital, betterment State-owned Enterprises (SOEs), and amended nationalist work proviso and vigor assemblage viability.
“Pakistan’s fiscal show has been strong, with a superior surplus of 1.3% of GDP achieved successful FY25, successful enactment with programme targets,” it added. Pakistan’s gross reserves stood astatine $14.5 cardinal astatine the extremity of FY25, up from $9.4 cardinal a twelvemonth earlier, and are projected to proceed rebuilding successful FY26 and implicit the mean term.
The committee besides noted that “inflation has increased, reflecting the interaction of the floods connected nutrient prices, but this is expected to beryllium temporary,” the study said. IMF Deputy Managing Director and Acting Chair Nigel Clarke said successful a connection that “in the look of an uncertain planetary environment, Pakistan needs to support prudent policies to further entrench macroeconomic stability, portion accelerating reforms indispensable to execute stronger, private-sector-led, and sustainable medium-term growth,” the study added.
IMF backs reforms, flags fiscal gaps
Mr. Clarke besides stressed that “reforms successful the vigor assemblage are captious to safeguarding its viability and improving Pakistan’s competitiveness”.
He noted that timely powerfulness tariff adjustments had “helped trim the banal and travel of circular debt”, portion emphasising that “subsequent efforts request to absorption connected sustainably reducing energy accumulation and organisation costs and addressing inefficiencies successful the powerfulness and state sector”.
The committee stated that the RSF tranche is designed to enactment Pakistan’s clime adaptation and catastrophe resilience agenda. With this tranche, full disbursements to Pakistan nether the EFF and RSF present basal astatine astir $3.3 billion, supporting some macroeconomic stabilisation and semipermanent structural reforms for clime resilience.
Officials successful Islamabad welcomed the support arsenic a ballot of assurance successful Pakistan’s betterment efforts and macroeconomic management, portion emphasising that the existent trial volition beryllium successful turning these commitments into tangible economical recovery, the study said.
Last month, the IMF had expressed dissatisfaction implicit Pakistan’s anemic fiscal management, currency monitoring and accountability for nationalist assets allocation portion recommending to minimise misuse of payer wealth for idiosyncratic and governmental whims.
